Tourism and hospitality boost UK economy in May

The UK's economic recovery accelerated in May when tourist-related leisure businesses reopened but the delay of ending restrictions imposed by Covid-19 put the hospitality industry at risk, research reveals.

The report revealed that 11 out of 14 sectors achieved higher production growth than the previous month in May, compared to nine sectors in April as the UK continued to be at loggerheads.

All 14 sectors registered increased employment in May, led by manufacturing, while employment in the tourism and recreation sector rose for the first time since January 2020.

Manufacturing witnessed the strongest employment rates as businesses added to the labour force to cope with rising global demand for goods.

Jeavon Lolay, head of economics and market knowledge at Lloyds Bank's commercial banking department, said that sectors that have been worst hit by coronavirus restrictions are now outstripping those that have enjoyed a more free operation during the restrictions.

Tourism and leisure employment rose for the first time since January 2020, as firms benefited from the relaxation of the barriers.